THE PRESIDENT: Good morning. I just finished meeting with members of
my Cabinet. I am proud of this team; I appreciate their service to the
country. We discussed the priorities that we're working on to meet for
the needs of the American people; we're talking about the business that
remains on Capitol Hill.

I want to thank the Senate and congratulate the Senate for passing a
good energy bill -- and now the House must act. Congress also must move
quickly to pass legislation to protect middle class families from the
burden of the Alternative Minimum Tax -- without raising taxes. And
Congress must pass legislation to ensure our intelligence professionals
can continue to effectively monitor terrorist communications.

Congress must also move forward with spending legislation to fund the
day to day operations of the federal government -- so that the Cabinet
departments can provide essential services for the American people.

Because Congress did not pass any spending bills by the end of the
fiscal year -- with the exception of one -- many essential services are
now being funded under what is called a continuing resolution. This is
a bill that keeps the federal government running on a temporary basis
while lawmakers work out their differences.

In recent days, lawmakers have made some important progress in working
out such differences. I'm pleased to hear that they are close to
reaching agreement on a budget. There are a lot of details left to be
worked out, and I hope they will pass a bill that is fiscally
responsible and does not raise taxes. I also understand that Congress
may provide a down payment on the war funding I requested -- without
artificial timelines for withdrawal.

These are encouraging signs. Unfortunately, members of Congress have
not been able to complete their work by today, when the current
continuing resolution expires. So last night Congress passed another
continuing resolution that will fund the government for one more week --
and I just signed the resolution.

I hope that Congress will use the additional time productively. I urge
them to pass a clean spending package that meets the reasonable spending
levels I have put forward -- without gimmicks, without policy riders
that could not be enacted in the ordinary legislative process, and with
much needed funding for our troops in combat.

It would be disappointing if members of Congress did not finish their
work by the holidays. But if they don't, they should not carry the
unfinished business of 2007 into the new year. Instead they should pass
a one-year continuing resolution that does not include wasteful spending
or higher taxes. And they must ensure that our troops on the front
lines have the funds and resources they need to prevail.

I'll take a couple of questions. Deb.

Q Mr. President, on the Mitchell report, sir, do you think that the
baseball players actually mentioned in the report should be punished?

THE PRESIDENT: A couple of reactions to the Mitchell report. As you
know, I'm a baseball fan; I love the sport, I love the game. Like many
fans, I've been troubled by the steroid allegations. I think it's best
that all of us not jump to any conclusions on individual players' name,
but we can jump to this conclusion: that steroids have sullied the
game, and players and the owners must take the Mitchell report
seriously. I'm confident they will.

And my hope is that this report is a part of putting the steroid era of
baseball behind us. You know, I -- in the State of the Union a couple
of years ago, I addressed the issue of steroids, and the reason I did so
is because I understand the impact that professional athletes can have
on our nation's youth. And I just urge our -- those in the public
spotlight, particularly athletes, to understand that when they violate
their bodies, they're sending a terrible signal to America's young.

Toby.

Q Mr. President, what was Kim Jong-il's message to you in response to
your letter to him? And what was -- what is your response to him?

THE PRESIDENT: Well, first I'm -- you know, I got his attention with a
letter, and he can get my attention by fully disclosing his programs,
including any plutonium he may have processed and converted -- into
whatever he's used it for; we just need to know.

As well, he can get our attention by fully disclosing his proliferation
activities. We have laid out a way forward -- and I say "we" -- there's
four other countries that have joined us; we've got what's called the
six-party talks. And the five of us agree that there's a way forward
for the -- Kim Jong-il, and an important step is a full declaration of
programs, materials that may have been developed to create weapons, as
well as the proliferation activities of the regime.

Thank you very much.

Q Oh, don't stop now.

THE PRESIDENT: I had a -- well, I've got freezing Cabinet members out
here. (Laughter.) They're whispering; you can't hear their whispers.
(Laughter.) I can just feel their vibe saying, I'm envious, they're all
wearing these expensive coats, and here we are. (Laughter.)

I hope you enjoyed the holiday bash as much as I did. I noticed some of
the silverware is missing. (Laughter.) We'll be taking a full
inventory. (Laughter.) Happy holidays.